This is a topic many technologists ponder about every day. What is website business? How do people make money from their website? Who is paying for it? How do they weight a website or blog for financial terms? Can one make a living by simply creating a blog or website? What is an online job? All this and many other questions people asked shall be deal with in this article.
Everything you see on the internet was written and posted by someone somewhere all in a bit to attract internet users. As people visit your site to pick up information, your website or blog generates traffic. Traffic can be simply refers to the number of unique visitors a website receives or the number of times people click on your website or blog link. Generally, this is determined on a monthly basis although many tools exist these days that allow website owners to view daily statistics. This is helpful when you post new content and want to monitor how many people view your recent postings.
The most important part of any website monetization strategy is traffic generation. Your website could have the best content in the world but if nobody knows about it won’t generate traffic and you will be unable to make money. The traffic your site generates, the more the finance it generate to its creator. Therefore, most website owners spend more time figuring out new ways to generate traffic than any other activity related to their website.
Once you have created a blog or website, the next thing on your mind is to generate traffic. How do you go about this?
There are numerous effective and efficient traffic generation methods among the popular methods include:
Search Engine Optimization (SEO)
SEO refers to optimizing your website (rendering it more accessible) for major search engines such as Google. A good quantity of website traffic (sometimes as much as 75%) will come from Google, Bing, Yahoo, and other popular search engines.
To successfully make money from your website or start a website business, you need to tailor your website to search engines. This allows readers and researchers find your content among thousands or even millions of other websites.
A good SEO is a tricky and dynamic component of the technologic world. Many websites owners care less about their readers; instead focusing on search engine optimization only. Most search engines providers like Google periodically change their search algorithms to penalize these websites and award those websites providing genuine and valuable information to Internet users.
Best SEO practices include websites that is easily navigable, contents that are fresh, up to date and valuable, and a healthy community of readers who actively participate in group discussions on your website.
The effect and popularity of social media sites like Facebook and Twitter cannot be underestimated. Their presence had made it necessity to derived new traffic to your website. Your website should have easily accessible links that allow readers to “share” contents through Facebook, Twitter not just that, it should also have an active Facebook page, Twitter account that is appealing to readers and promotes engagement from other social media users.
In recent years, Facebook marketing has represents an entirely new sector that readers, researchers and potential customers can be reached that is difficult to find using conventional marketing techniques and SEO best practices alone.
Many successful websites owners have realized the power of marketing on the popular video sharing website YouTube. As a website owner, you can create and upload interesting and helpful videos that can attrack potential readers to watch and share with others. The goal is to motivate these readers to visit your website again based on the content you have shared through YouTube.
Increase in YouTube popularity every year has cause many experts to believe that the full marketing potential of YouTube for websites has not been realized yet.
It is common for website owners to offer a free product (like an e-book) in exchange for your email address. Believe it or not, this is a very effective technique for generating new traffic and sales on your website.
The email list you generate at the end is full of people who are interested in your information or products. Unlike the usual spam email lists that send out offers to hundreds of people who may or may not be interested in your product; your email list is full of potential customers.
You can provide them with special deals or share new content with your email list. Either way email list is a powerful website monetization technique.
Making Money from Traffic
Once your website has successfully started to drive traffic, you can actually begin to make money. Advertising is the best way to generate revenue from your website. Some advertising campaigns pay just for the number of visitors to your site while others require that the visitor perform some action (for example make a purchase or click on a link) for you to get paid.
Google is a great place for websites owners to start earning money from their website. The AdSense campaign is free to join and places advertisements on your site based on the content you provide.
For example, if you own a website about Petroleum, Google AdSense will automatically place ads related to the Petroleum industry on your website. When users click on these links, you are paid. This is known as a pay-per-click or PPC campaign. Although the revenue you generate for each click may only be a few cents, if your website generates a large amount of traffic, these clicks quickly add up to a respectable pay check.
This is when you advertise specific products on your website and receive a commission each time they sell.
There are many sites that allow you to offer affiliate products without directly contacting the company selling the products. But as your website grows in popularity and you become more experienced, you may decide to contact major retailers directly for affiliate opportunities.
The key to effective and efficient affiliate marketing is to ensured that any affiliate opportunities you offer on your website are related in some way to the content you are providing to your readers.
Selling Your Own Informational Products
After some time of effectively running your site, you may discover that you have built up a strong reader base who is genuinely interested in what you post. If so, consider creating your own informational product. E-books for example are a great way to generate income from your site and can represent a sizable portion of your total monthly revenue.
Creating your own informational product requires some mastery of the topic, good writing skills and vocabulary. Alternatively, you can outsource the writing to an experienced writer for better results (there are many sites that you can go for help) for a small one-time fee. Visitors are able to purchase and download your informational product and you immediately reap the benefits of this income stream.
There are a good number of other avenues (such as creating a job board) you can use to make money from your website or blog. Millions of websites generate revenue every day using the techniques discussed above as well as a number of others. Remember that the key to successfully monetizing your website is traffic.
Simple Calculation for Making Money with Google AdSense
Assuming a plan to make $6000 a month from Google AdSense and/or Google AdSense alternatives
A month has 30 days; $6000 divided by 30= $200
One would have to make on average $200 per day
Therefore, we would have to create either 200 pages views (this is what Google counts in your reports every time a user views a page displaying Google ads) that generates $1 a day OR 400 pages that generates 50 cents a day OR 800 pages that earn 25 cents a day (which sounds achievable and reasonable, right?). Let’s say you have 800 high quality posts and you earn $0.25 per click from AdSense.
My analysis was done on traffic and AdSense stats (using Google Image Search) of several websites including my own blogs and websites.
From my analysis, it was realised that the average Page CTC (Click Through Rate, CTR is the number of ad clicks divided by the number of impressions or page views) is around 1% (or something we can achieve easily). But it really depends upon your niche, website design and other factors.
In fact I have achieved a Page CTR of over 20% in 2014 for a niche website and was making $100+ a day from Google AdSense alone.
Assuming a Page CTR of 1% and average CPC is $0.25 (I believe it’s quite an attainable target unless your keywords have no advertiser competition – e.g. Arts blog).
*Cost Per Click (CPC) is the amount you earn per ad click usually determined by the advertiser (some advertisers may be willing to pay more per click than others, depending on what they’re advertising).*
Some of the best paying AdSense niches are Internet Marketing, Web Hosting, Finance, Technology, Computers and Internet, Software, Health etc. and some of the lowest paying AdSense niches are Celebrity Gossips, Entertainment, Jokes, Arts, Movies, News blog, Wallpapers, Quotes, Recipes, Photo blogs etc.
As mentioned earlier $6000 per month means you earning on average $200 a day. If average CPC is $0.25 then one need 6,000/0.25 = 24000 clicks a month (or approximately 800 clicks a day) to earn $6,000 per month from Google AdSense. Assuming that your Page CTR is 1% you need approximately 6,000 page views a day.
Now, assuming a “Bounce Rate” (estimated percentage of visits to your website that is made up of a single page view) is 100%. This implies that 6,000 unique visitors are required a day to generate 6,000 page views a day.
Therefore, 6,000 visitors are needed a day to earn $6,000 a month from Google AdSense alone (with a CTR of 1% and CPC of $0.25).
It is important to understand that we will not be using Google AdSense alone to monetize your website. We can raise more money by selling in-text ads, direct banner ads, CPM ads, sponsored links, affiliate marketing, and so on. It is possible to earn more with less page views. This is especially true with Affiliate market the relays on traffic quality and not traffic quantity.
How to Optimize Google AdSense
This can be done in several ways. For instance, you can try text & image ads, text ads only, image ads only, to verify which ad format performs better.
Ad formats such as 728 x 90, 336 x 280, 300 x 250, and 160 x 600 are Google recommended due to the fact that they are advertisers friendly.
When using recommended ad formats, your AdSense ads will perform well due to increased competition because the recommended ad formats by AdSense are the most commonly used ad formats and thus almost all advertisers must be targeting those ad formats. This increases the competition naturally and Google will be showing the highest paying ads on your website. But it is also good to try different ad formats as Google is now offering a variety of ad formats.
I recommend you to try A/B testing (for different ad types, ad formats, ad colours) and also by placing ads at different sections on your website (above and below the fold) on your website to find out the best performing ad formats and the position offering the best CTR.
"It’s a myth that filtering ads can prevent ‘low-paying ads’ from appearing, so as always, we recommend blocking only those ads that you feel are unsuitable for your users".
The more website traffic your website generates, the more income opportunities will be presented to you (many companies will want to advertised on your site). Focus on creating unique, up to date, valuable content and traffic will follow. Once you start making money from your website, you will be amazed why you didn’t think of this sooner. So get out there and join the hundreds of thousands of other people making a living from their websites!